Question

Rahul purchase 500 shares of Rs.100 of company at of 700 After two months he received a dividend of 25%. After 6 months he also got 1 bonus share for every 4 shares held. After 8 months he sold all his shares at Rs. 610 each The brokerage was 2% on both purchase and sales. Find this percentage on the investmen​

Answer 1

Answer:

1. Sum invested = No. of shares bought \times MV of 1 share

2. No. of shares bought =\dfrac{Sum \: invested}{MV \: of \: 1 \: share}

Also, no. of shares bought =\dfrac{Total \: dividend}{Dividend \: on \: 1 \: share}=\dfrac{Total \: income \: (profit)}{Income \: (profit)} from 1 share

3. Income (return or profit) = (No. of shares) \times (rate of dividend) \times (NV) =(No. of shares) \times (Dividend on 1 share)

4. Return % = Income (profit) % =\dfrac{Income}{Investment} \times 100 \%